Alameda plan dropped from health exchange

Alameda Alliance for Health — one of the 12 health plans offered through the state’s health insurance exchange — was removed from the marketplace’s offerings on Friday until further notice.

The plan, which is based in Alameda and was formed to offer no or low-cost coverage to Alameda County residents, failed to get state approval to sell insurance in the commercial market.

Alameda Alliance was among the dozen insurance offerings available through Covered California, the state’s health exchange created by the federal health law.

“Alameda Alliance has a solid provider network and is a valuable asset to the community,” said Peter Lee, Covered California’s executive director, in a statement. “We look forward to the company getting its commercial license, so we can welcome its plans back to the exchange.”

Officials from Alameda Alliance for Health did not return calls for comment Friday.

Anthony Wright, executive director of Health Access, said it’s likely the plan was not financially ready to take on the new line of business.

Still, the news is just one more hit to the rollout of the Affordable Care Act, also known as Obamacare, which has been plagued with problems, particularly on the federal level.

It’s unclear whether Alameda Alliance will be ready to sell its products during this open enrollment period, which ends March 31. The decision does not affect Medi-Cal recipients currently enrolled in the plan. Consumers who had signed up for the plan through Covered California have been told they need to find a new plan.